How New Tech Advancements Are Protecting Your Finances
A report by Javelin Strategy and Research revealed that credit card fraud has dropped from $8.1 billion in 2017 to $6.4 billion in 2018. While this is good news for fraud victims, account takeover and fraud are on the rise. Fraudsters are using stolen identities to take out loans, apply for a mortgage, and purchase goods. The rising rate of account theft is one reason why protecting your data is more important now than ever. Financial institutions must also implement the latest tech in protecting banking processes.
Chip Technology for Credit Card Transactions
Security is one of the key factors people consider before applying for credit cards. People want assurance that the security features on their credit cards protect them against fraud and theft. Chip technology, better known as EMV, is undeniably more secure than magnetic stripe cards. EMV credit cards contain small microchips that keep data safe, making it hard to clone someone’s information. Fraudsters must get to the physical chip circuit to get your bank information, something they must invest over $1 million to accomplish.
Biometrics in Banking Services
Digitization in the banking sector has increased demand for fast and safe transactions. Financial institutions are shifting their focus on biometric technology to enhance security to meet consumer demands. Biometrics recognizes account holders through biological characteristics like voice and face recognition, fingerprints, iris, and finger vein patterns. This automated process replaces passwords, pins, and bank accounts; making authentication easy and transactions more secure.
The rapid growth of online payments is influencing data theft and account fraud, leaving consumers at high risk of financial losses to scammers. Fortunately, banks have put in place a security feature known as a two-factor authentication to curb theft within online banking services. The two-factor authentication requires you to follow the usual step when accessing bank accounts on your phone or computer. You first enter the username and password, and then you will receive a text message or email with a one-time password you must register to complete the process.
The multi-factor authentication process keeps your account safe even when fraudsters get access to your password or pin. The concept is that login requires you to have a password, phone, or computer to access the one-time password. Biometrics can also be used in two-way authentication because physical traits like fingerprints, voice, and face help authenticate account holders in the financial sector.
Although these technology advancements guarantee a sense of security, data breaching is increasing. Scammers are looking for possible ways to gain access to your information, and technology is not all that foolproof. So it is upon you to ensure your data is safe to prevent cases of credit card and account theft.